SpaceX proposes a $24 billion Texas supercomputer and gas power plant

SpaceX, the rocket company owned by Elon Musk, proposed building a massive AI supercomputer and dedicated power plant on a 444-acre site in South Texas, according to Crypto Briefing. The project near the Port of Brownsville carries an estimated initial capital investment of $24 billion.

The facility would run on up to 35 temporary gas turbines delivering an initial output of approximately 748 MW. The City of Starbase is set to take up the proposal at a public hearing scheduled for December 9, 2026. On the agenda are tax abatements and economic development agreements tied to the project.

The proposal follows SpaceX's merger with xAI in February 2026 as the company pushes toward a total AI compute capacity target of 13 GW by the end of 2027. Before this project surfaced, the company secured a $40 billion GPU financing deal with Apollo, the investment firm.

The Texas project also lands amid a political shift, as newly elected Texas governor Gina Hinojosa has called for a pause on new data center approvals. Whether a facility with its own on-site power generation will face regulatory hurdles from the state remains an open question.

For residents near Brownsville, the December 9 hearing serves as the first formal checkpoint to review the industrial development and weigh in on its local impact.